Terminating Your Physician Employment Agreement

Many of our physician clients are unaware of their termination rights prior to meeting with us.

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If you want to terminate your employment, the first thing you need to do is read your contract.

Most physician employment agreements have substantial termination provisions. You need to know what yours says regarding termination with and without cause, what notice is required, and what other provisions will be triggered by termination.

Many times, employment agreements have an expiration date. For example, if the contract is a three year agreement with an effective date of January 1, 2023 the contract will expire on December 31, 2025. However, it is essential to be aware of any automatic renewal provisions. Some contracts require advance notice on the part of the physician to prevent the automatic renewal.

We also see many extensive provisions for termination without cause. Not all contracts include a termination without cause provision. A termination without cause provision allows you to terminate the contract for any reason or no reason at all. There is usually a requirement to provide written notice in advance, sometimes thirty days prior to termination, sometimes longer.

There are also often termination for cause provisionswhich will list reasons that enable physician to terminate the contract before the expiration date.

No matter the reason for termination, there may be other clauses that will be triggered. It is essential to carefully review every provision of your contract with your attorney to know what consequences or obligations may be triggered.

For example, if you have a non-compete provision, that may be triggered by any termination. There may also be other provisions that can be triggered such as repayment provisions, confidential information provisions, and more.

It is essential to read the entirety of the contract to know the consequences you will face if you terminate your employment agreement.

You also want to loop your attorney in early, so that they can help you understand the ramifications, but also so they can help you approach your employer appropriately. You may want to ask your employer to waive certain provisions and your attorney can help you draft any related amendments.

We help our clients understand their contracts, potential consequences, and best routes for termination.

If you have questions or need help with your healthcare contract or your termination clause, contact Rickard & Associates today.

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